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Post by valueinvestor123 on Dec 5, 2023 18:33:43 GMT
Which conditions have to be met? What are “qualifying loans”? Has anyone done this? Thanks My wife accountant is currently going through the process. Because my wife now has no taxable P2P income* we are using her P2P losses (some self deemed) against a property sale. *Priority has to be given to P2P income first. Hi, Can I ask: have you managed to do this in the end? (offsetting capital losses from peer2peer against property sale).
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Post by valueinvestor123 on Aug 14, 2023 10:43:25 GMT
bracknellboy Our interpretation of this is that this distinguishes those P2P loans that were never eiigable for tax relief i.e. those loans that crashed and burned before offsetting of losses against income tax was available. Before that time CGT could be used and the 'however' is used to distinguish those pre income tax relief loans from those that would be eligable for income tax relief. HMRC might view matters differently when the return is made but we will see ..... ilmoro My accountant said that she would be taking the approach you have stated. I have already compiled and supplied a spreadsheet with all loans listed along with the latest and any pertinent loan updates to show that the loan has been written off by the platform or is deemed to be irrecoverable by myself (as per the self deeming rules). This spreadsheet will be supplied with the computaion along with the CGT return. This was a time consuming task but since the timescales are tight following the sale of the property I got the task done early. To answer the question in the other thread where this is being discussed. IF recovery is made on any of the written off / self deemed irricoverable loans in the future that will be declared as income (and taxed accordingly) in future years. Regarding itemising loans: is this information available from peer2peer websites? (My losses are mostly from Fundingsecure and Lendy). I have not kept track of which loans went bust. But it would be good to have proof ready at hand. There’s only 60 days following sale of property to work out precisely capital losses.
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Post by valueinvestor123 on Aug 13, 2023 13:28:47 GMT
What does your accountant say about this part: “Loans that become irrecoverable on or after 6 April 2016 An irrecoverable loan that would have been eligible for capital gains relief as a capital loss under TCGA 1992 will no longer be eligible for that relief. This is because Section 2(3) of TCGA 1992 specifically gives priority to income tax reliefs.” As far as I know, the platforms such as Fundingsecure and Lendy went into administration in 2019, no? At a guess they have read the next but one paragraph which adds a qualification to that statement The next paragraph being this? “Loans that become irrecoverable between 6 April 2015 and 5 April 2016 An irrecoverable loan that would have been eligible for relief as a capital loss under TCGA 1992 may still be eligible for Capital Gains relief, but only if no claim is made for P2P income tax relief for the loss on the loan.” Most of the loans that have become irrecoverable were after 2016 though? Or did I miss something
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Post by valueinvestor123 on Aug 11, 2023 16:32:32 GMT
Another possible consideration here is it may not matter much what the original intent of this section was or was not. P2P is niche and so this will be relatively little used, and what will matter is how someone at HMRC today reads it. And given its wooliness/potential ambiguity/lack of clarity the broader interpretation is entirely possible regardless of whether it was originally intended or not. Good luck with it. Agreed. What does your accountant say about this part: “Loans that become irrecoverable on or after 6 April 2016 An irrecoverable loan that would have been eligible for capital gains relief as a capital loss under TCGA 1992 will no longer be eligible for that relief. This is because Section 2(3) of TCGA 1992 specifically gives priority to income tax reliefs.” As far as I know, the platforms such as Fundingsecure and Lendy went into administration in 2019, no?
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Post by valueinvestor123 on Aug 11, 2023 16:24:21 GMT
What is the reason for HMRC to mix up income with capital gains? To my knowledge, they never do this with any other asset class. Is it because nobody predicted that there might be capital losses? Would be good to have a definitive answer on this.
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Post by valueinvestor123 on Aug 9, 2023 17:37:27 GMT
I have to agree with you bracknellboy the wording could be far clearer. My accountants view was that can be said to apply. We are of course ready to be knocked back but those paragaphs do appear to confirm that we can apply the losses. So in case CGT relief can be used, do you need to work it out and put down each individual loan, or can you give a one figure for all the loans where it is applicable? I am asking my accountant as well.
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Post by valueinvestor123 on Aug 9, 2023 13:02:34 GMT
were you doing your lending as an individual or through a company? If you were lending as an individual, there is no mechanism for using P2P capital loss to offset capital gain anywhere. You can only use it to offset P2P income. Actually not true ... you can use CG relief where loans don't qualify or you don't have any P2P income to offset provided the conditions for CG are met. How this works in practice I don't know www.gov.uk/hmrc-internal-manuals/savings-and-investment-manual/saim12210Which conditions have to be met? What are “qualifying loans”? Has anyone done this? Thanks
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Post by valueinvestor123 on Aug 9, 2023 12:44:04 GMT
Hi, I am selling a house and there will be some capital gains. I want to use some of the capital losses against the capital gains of the house. Can I just put in the total amount the platform lost me or do I need to list individual loans? If the latter, is there an easy way to work this out front the platform interface? I am not certain how to work it out. Thanks for the help! were you doing your lending as an individual or through a company? If you were lending as an individual, there is no mechanism for using P2P capital loss to offset capital gain anywhere. You can only use it to offset P2P income. Capital losses from equities can be offset against capital gains elsewhere (property etc)? Why not the same with peer2peer loans?
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Post by valueinvestor123 on Aug 9, 2023 12:42:59 GMT
Hi, I am selling a house and there will be some capital gains. I want to use some of the capital losses against the capital gains of the house. Can I just put in the total amount the platform lost me or do I need to list individual loans? If the latter, is there an easy way to work this out front the platform interface? I am not certain how to work it out. Thanks for the help! Obviously best to get professional advice to be 100% sure, but I am fairly certain that you can only write off p2p capital losses against other p2p interest earned in that tax year, and not against capital gains in other asset classes (such as a house sale). The p2p interest earned can be on another (or multiple) platforms though, but has to be p2p. Unfortunately, given the high values of capital losses in p2p and the increasing defaults, it actually pretty hard to make enough p2p interest to offset fully against p2p losses. Are you serious? But I could offset capital losses from equities? (also a different asset class). Why not peer2peer? What makes them special?
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Post by valueinvestor123 on Aug 9, 2023 10:18:03 GMT
Hi, I am selling a house and there will be some capital gains. I want to use some of the capital losses against the capital gains of the house. Can I just put in the total amount the platform lost me or do I need to list individual loans?
If the latter, is there an easy way to work this out front the platform interface? I am not certain how to work it out.
Thanks for the help!
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Post by valueinvestor123 on Aug 9, 2023 10:17:34 GMT
Hi, I am selling a house and there will be some capital gains. I want to use some of the capital losses against the capital gains of the house. Can I just put in the total amount the platform lost me or do I need to list individual loans?
If the latter, is there an easy way to work this out front the platform interface? I am not certain how to work it out.
Thanks for the help!
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Post by valueinvestor123 on Jan 13, 2023 14:49:19 GMT
What’s going on here? Am I right in reading that according to the latest update, we’d get 40-50% 0.04-0.05 on the pound? I thought property prices went up. Is there some cost leakage not disclosed in the updates? Big salaries to pay? Can a stop be put to it? (Legally). They never mention the costs (salaries) in the updates. Is there any incentive to get the sales done sooner if they are still drawing large salaries? It sounds like another scam and the expectation are being set lower and lower with each update. Also if others redeemed their shares at 0.02, shouldn’t it increase the value of the remaining shares?
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Post by valueinvestor123 on Mar 4, 2021 9:26:07 GMT
Very long report.
- Long hoped for refinance has failed, one alternative has dropped out leaving one bank still in negotiation - Alternative strategy of selling empty properties has started - Additional short term funding has been raised secured against portions of the portfolio - Rental occupancy rate has fallen and receipts are lower than the same period a year ago
"- Long hoped for refinance has failed, one alternative has dropped out leaving one bank still in negotiation" They may have known for a long time that this wasn't going to work. The other bank is extremely unlikely going to finance, since nobody else wants to. "- Alternative strategy of selling empty properties has started" They need to sell down to service/pay down the debt. They are selling the easiest properties first. No idea whether they will even be able to sell the rest of the portfolio (and at what price). "- Additional short term funding has been raised secured against portions of the portfolio" This just adds more (expensive) debt. "- Rental occupancy rate has fallen and receipts are lower than the same period a year ago" Yeah, I really don't understand what is happening with all the rent or where it is going. I believed in this venture. But the reports, really putting me off. (They are either not actually facing up to the facts or are downright misleading).
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Post by valueinvestor123 on Mar 4, 2021 9:22:56 GMT
Every report since the beginning has been filled with false optimism and ambitions, that were clearly unattainable. It is not clear when exactly they knew, they would get rejected by the bank for refinancing; it may well have been ages ago as it has been dragging for forever. I am sure there is some misinformation there too. Clearly the banks are looking at the portfolio and are not liking something. Instead of saying straight what the problems are, they are blaming it on banks' 'bad behaviour' and difficult climate. This is clearly non sense; the residential property market is very healthy at the moment.
It is better to liquidate the portfolio and return monies to shareholders, especially while exempt from stamp duties (if applicable). Although I don't know if they can, as I suspect there might be many gremlins in the cupboard they haven't told us about (and will probably blame it on someone else's 'bad behaviour'). If the portfolio is clean and not overvalued, then there should be nothing to worry about. What annoys me is that, it is not clear where all the rent is going (they say it's costs and renovations) but it is really not clear...Since not all properties need renovation, only a proportion should be going to costs and renovations, shareholders should be given the rest as dividends, at least as some kind of token for waiting all this time.
I don't like the smell of it anymore and I think the time has come to liquidate the whole lot.
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Post by valueinvestor123 on Feb 11, 2021 18:40:42 GMT
How do you guys(girls?) know which ones have been sold? (and for how much) This forum. L DD forum. I've looked at the LAG FB group, but the number of whiners on there just annoyed me in about three seconds flat. Thanks. I think I found the spreadsheet with most fo the info I need: docs.google.com/spreadsheets/d/1l6J8YmDRqZphFmZHy13oWEtugPznRWHubDcwA-nGCwk/edit?fbclid=IwAR1lzsRwhiW7g8Hy4wkl4umT6Mam5UByF7h-9uFXH8aBoi6FERtXKux0oUw#gid=0Plus searched the thread you referenced for specific loans. Many loans have no/very little info so guess have to wait still. I can't quite work out why the various fees/third party costs vary so much...I estimate that only about 33% of the sale price actually goes to Lenders. Confused why so little. (Sometimes it is quite a bit less, sometimes it is bit more).
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